Should I sell in '12?

SOLD

Cutting through the fat in 2012!  Ok, you're on the fence...should I sell in 2012, or wait it out because of doubt?  If you have to sell, then there is no better time than today, but let's just say you are thinking you could wait 'til the later part of the year, or maybe next year, to sell...so what should you do?   We need to look at your goals for selling.  "Wait," you may say, "what do my personal goals have to do with selling our home"?   If your goal, let's just say, is to move your family to a new home by June because of a job change or promotion, then your goals will drive your getting that home sold faster than if you are retired and just want to be closer to the grandkids.  So you need to take your temperature in relation to your motivation to sell.  We need to note here...usually your motivation to sell will help to determine how fast you sell, because your motivation will force you to be more serious about your price. 


Now let's just take a brief look at timing.  The natural "hot" season in our market is from late March to mid October. When you are ready to sell your home, you must have your home "IN" the market when the maximum number of buyers are in the market. This will allow you see the highest price in the shortest time, because you will have more buyers out looking at the peak or hot months.  Please keep in mind you and I have a common goal...get this home sold for the highest price in the shortest period of time.  

So, should you sell in 2012...
The Good: The market is poised to trend up in 2012, and with historically low interest rates, I predict this to be a strong year.      
The Bad: The Stock Market is still struggling abroad and here in the states, and gas prices are looking like they are on the rise, which affects consumer confidence...in turn keeping some buyers off the market this year.  

Grace and Peace...

Skip Geiser

(850) 221-6442

http://www.skipgeiser.com/

SkipGeiser@live.com

The Geiser Team with Main Street Properties

           

Listing vs. Selling in 2012!

"Skip, how do I go from having my home listed to getting it sold in 2012?" Wow, am I glad you asked!  I have been working with clients that have been ON the market in the past, but not IN the market. "Wait, Skip, what is the difference between on and in the market?" Being on the market is easy and painless, but being in the market is usually a bit more difficult and painful.  A few years ago, I could look at your homes' value and let you to build in a $5,000 to $10,000 buffer, then expect a buyer to come in and make an offer. Not today...today we have to determine your home's value and put your price right on that value, or maybe just below the true value.  Ouch! I know.  I know this is what you are saying right now, "I am NOT going to give my house away."  or  "I need to get X dollars out of my house".  Well, let's look at it this way...say 3 years ago you bought stock at $103 dollars a share, but today on the open market it is worth $93 dollars a share.  What price do you think someone will pay you for your stock?   $93 right?  But wait, if you say to your stock broker, "Man I really need $105 a share." or "I am NOT going to give it away."  What is he going to say?   The Stock is worth what the open market will pay, just as your home is also worth what it will fetch on the open market today.  "So, Skip, what can I do to get my home sold?"  Well, I hope your sitting down...here it is in a nut shell....PRICE it so it will sell!

"Ouch, Skip, you're hurting me."  Yes, I know it hurts, but you did want me to tell you the truth, and you do want your home to sell, don't you?  Listen, I could candy coat it here, but that would just lead you down a path that would have your home ON the market in 2013, and that is not what you or I want.  I could give you a long list of things like paint the front door, or pressure wash the driveway, but if we don't get the price right, all the other factors will never get the attention of the buyer that went to see another home that was priced right. 

Grace and Peace...

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

                

The home of our dreams vs. the dump that has a low price!

How low can ya' go?

Skip, we have found the home of our dreams, and we have decided to offer 50K under what they are asking because it is a "buyers market"!  Let's ask a few key questions before we go too far...
1. Are the sellers close to the true market value?
2. Do the sellers hold a mortgage that will prevent them from accepting a low offer?
3. Have the sellers done improvements to justify their price? 
4. Has the seller gone through multiple price reductions, and when was the last reduction ?
5. If you were the seller, how would you react to your offer?

 "Hey Skip, isn't any offer is better than no offer?"....Yes!  I have heard this statement a lot with the economy like it has been in the last few years.  Any agent who has some experience under their belt will tell you that AN offer is better than NO offer; just keep in mind, this is a place to get the negotiations started.
"I have been listening to the media, and they are saying the deals are better than they ever have been in years past, so I think I should come in really low and get a steal of a deal."  Yes, I agree, so let's just take a scenario to illustrate my point...the sellers of the home you have fallen in love with have been reducing the price of their home with the fall of the market, and I show that to you by showing you their price drops over the time the seller has had the home listed.  I, as your agent, have shown you the Current Market Analysis which reveals the sellers have the price very close, or below, it's true SOLD value.  You also note that the home has a long list of upgrades like granite countertops, hardwood flooring, sprinklers, etc., and has been well-maintained, which does not seem to match the other homes you have been looking at in your price range. So now, you tell me, is the 50K under asking price offer a reasonable expectation on our part, as a potential buyer?  I would say no.  If you offer something that low, you should expect the seller to come back really strong on their original price, with the thought you are not a serious buyer.  If you want to come in really low on an offer, one way to shore up the seller's confidence in your offer is to increase your Ernest Money Deposit or EMD, which is usually 1% or $1000, to let's say $5000, which would make the seller think you were more serious and really capable of purchasing their home.  Make sure you have a proof of funds and/or a pre-qualification letter from your lender to show your ability to purchase their home. Keep in mind some of this is a mind game on our par,t and if we can stack the cards in our favor, we should.  This is a wonderful time to buy with interest rates so low and the home prices really low.  It has never been a better time to buy.  Just keep in mind you need all the facts to really get the best deal out there!

Grace and Peace...

  

 

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

        

      

Milk, Paratroopers & Selling your home...Leave it to me to tie all that together!

You, as the seller, control the two most important aspects of selling your home, price and listing percentage—let’s call them tools in your tool box. Stating the obvious--price is the most important. If the home is over-priced, no amount of marketing will sell the home. But you say, "Skip, you just don't understand! Our home is just better than most other homes..." You can't imagine the percentage of people who try to tell me that their home is worth more than their neighbors because of this or that--not realizing their thoughts are because they are emotionally attached to the home and aren't based on fact. Harsh, but true..
Example: milk is for sale at ABC Mart for $2.99 a gallon, but across the street XYZ Mart has "premium" or "brand name" milk for sale for $9.99 a gallon...where are you going to buy your milk? You would say at ABC Mart! I ask you why?
Because it costs less for the same thing!
But what if XYZ mart gets huge banners that say "premium MILK $9.99 a gallon", or if they get paratroopers to jump out of ariplanes holding banners saying "premium MILK $9.99 a gallon"...now where are you going to get your milk?
You would say ABC Mart, because it costs less!
Yep, I agree.
Think of price this way...your sales price is what locks in the buyer on your home vs. your competitor's home.
Now let's go to your other tool in your tool box...Percentage! This tool is what will lock in the Real Estate agents, or push them away. Listen. Will an agent show a home that has a low co-broke? Yes, but put on your Realtor cap...their enthusiasm level may be a bit low. So, if you are going to spend the money, go ahead and get the most bang for your buck. If the homes in your area are listing for 6% and co-broking for 3%, then do the same or maybe just a little better say 7%, with a 3.5% co-broke. Be sure to insist that the agent offer 50%! After all, they are "spending" your money--make it work for YOU for what it is intended--to bring a buyer!
Remember you will always have the strongest response from your listing when it is first placed up for sale, so go on the market strong--price aggressively and offer a strong commission. Your "price reduction" later on will have much less effect after the home shows it has been on the market for a few months. Buyers will wonder what is wrong with the home that it didn't sell. A new listing is much more appealing as fresh goods!  Something to keep in mind!

Happy Selling...

Grace & Peace

http://www.skipgeiser.com/

SkipGeiser@live.com

(850)221-6442 

Really, who is this guy who wants to "Give his house away"?

When the sellers' market is great, I seem to hear, "I'm not going to give my house away".  When the market is leaning over toward a buyers' market, I seem to hear "I'm not going to give my house away!"   I realize you may have an amount you were "told" that your next door neighbor sold his house for, or you went to an automated home valuation site,  or you have an appraisal from 6 years ago but there is an old saying that goes something like this, "Something is only worth what someone will pay for it."  "A nickel ain't worth a dime anymore." Yogi Berra   Let's face it--if you count the cost of holding on to it, does it outweigh the amount your losing off the asking price? 
Let's just say you have your house for sale for $100,000.  Your payment is $800 a month, plus add in the utilities--now you would be out about $850 a month until you get a contract and are sitting at the closing table.  Now let's say you get a $90,000 offer and you say, "I'm not going to give my house away!"  Well then, let's just ask this question--at $850 dollars a month how long will it be before you spend the $10,000 you were refusing to "give away"?  Looks to me to be about a year.  Some homes, especially those that are priced at the high end of the price range (the sellers who are trying to get "top dollar" for their home--and are the ones who often say "I'm not going to give my house away.") are sitting on the market for a really long time--often more than a year.

So now, consider-- is the market going up or down?  Now let's just say you go a few more months and you get a second offer for $85,000.  How good does that first offer look now? 

Look, I realize there are some people who are at the bottom of their price and/or owe more than it is worth, but that is not who we are talking about here.  I am also not encourging sellers to leave money on the table, but you really need to use strong SOLD comparable homes that sold with in the last six months to get the value of your home--after all, that is what the appraisers will use.  If you look at the numbers, you may find it would be a better deal in the long run to take the "bird in the hand rather than waiting for the two in the bush" because you still have to pay all the expenses associated with keeping the home up and in proper showing condition--which reduces your bottom line anyway along with extended frustration.  I know...harsh reality.  Just something to think about....

Grace and Peace....